Method and system for secure authentication of user and mobile device without secure elements

ABSTRACT

A method for generating payment credentials in a payment transaction includes: storing, in a memory, at least a single use key associated with a transaction account; receiving, by a receiving device, a personal identification number; identifying, by a processing device, a first session key; generating, by the processing device, a second session key based on at least the stored single use key and the received personal identification number; generating, by the processing device, a first application cryptogram based on at least the first session key; generating, by the processing device, a second application cryptogram based on at least the second session key; and transmitting, by a transmitting device, at least the first application cryptogram and second application cryptogram for use in a payment transaction.

RELATED APPLICATIONS

This application claims the benefit, under 35 U.S.C. 119(e), ofprior-filed Provisional Patent Application Nos. 61/979,122 filed Apr.14, 2014; 61/996,665 filed May 14, 2014; 61/979,113 filed Apr. 14, 2014;and, in particular, Provisional Patent Application Nos. 61/910,819 filedDec. 2, 2013; 61/951,842 filed Mar. 12, 2014; 61/955,716 filed Mar. 19,2014; 61/979,132 filed Apr. 14, 2014; and 61/980,784 filed Apr. 17,2014, each herein incorporated by reference in their entirety.

FIELD

The present disclosure relates to the authentication of a user and amobile device without requiring a secure element in a paymenttransaction, and more specifically the generating of secure paymentcredentials in a mobile device used in a payment transaction without theuse of secure elements.

BACKGROUND

Advances in mobile and communication technologies have createdtremendous opportunities, one of which is providing the user of a mobilecomputing device with the ability to initiate and pay for paymenttransactions using their mobile device. One such approach to enable suchactions on a mobile device has been the use of near field communication(NFC) technology to securely transmit payment details from the mobiledevice to a nearby contactless point of sale (POS) terminal. In order toachieve this, mobile phones with secure element hardware, such as asecure element (SE) chip, are used to securely store the paymentcredentials. A secure element is a special that may be included in someNFC-enabled devices that is a temper-resistant platform that maysecurely host applications and their confidential data.

However, not all mobile devices have secure elements. In addition, somefinancial institutions may not have access to secure elements on mobiledevices, even if the mobile device is equipped with such an element. Asa result, many consumers with mobile devices that possess the requiredhardware for conducting contactless or other types of remote paymenttransactions may be unable to actually utilize this capability. Becauseof such difficulties, there is a need for a technical solution to enablemobile computing devices to initiate and conduct payment transactionswithout the use of secure elements.

Some methods and systems for conducting payment transactions usingmobile devices lacking secure elements, or without the use of secureelements in mobile devices equipped with them, can be found in U.S.patent application Ser. No. 13/827,042, entitled “Systems and Methodsfor Processing Mobile Payments by Provisioning Credentials to MobileDevices Without Secure Elements,” by Mehdi Collinge et al., filed onMar. 14, 2013, which is herein incorporated by reference in itsentirety. While such methods and systems can be suitable for conductingpayment transactions via a mobile device without using a secure element,many consumers, merchants, and financial institutions may be wary ofparticipating in such transactions due to a desire for even greatersecurity.

As a result, there is a need for technical solutions to provide evenmore security for the receipt and storage of payment credentials in amobile device lacking a secure element, as well as providing increasedsecurity for in the transmission of payment credentials to a point ofsale from the mobile device during conducting of a financialtransaction. Increased security in these processes can result inincreased peace of mind for all entities involved, which can result inan increase in the use of mobile devices for contactless or remotepayment transactions, which can provide a vast number of benefits toconsumers over traditional payment methods.

SUMMARY

The present disclosure provides a description of systems and methods forgenerating payment credentials in payment transactions.

A method for generating payment credentials in a payment transactionincludes: storing, in a memory, at least a single use key associatedwith a transaction account; receiving, by a receiving device, a personalidentification number; identifying, by a processing device, a firstsession key; generating, by the processing device, a second session keybased on at least the stored single use key and the received personalidentification number; generating, by the processing device, a firstapplication cryptogram based on at least the first session key;generating, by the processing device, a second application cryptogrambased on at least the second session key; and transmitting, by atransmitting device, at least the first application cryptogram andsecond application cryptogram for use in a payment transaction.

Another method for generating payment credentials in a paymenttransaction includes: storing, in a memory, at least a card master keyassociated with a transaction account; generating, by a processingdevice, a first session key based on at least the stored card masterkey; generating, by the processing device, a second session key;generating, by the processing device, a first application cryptogrambased on at least the first session key; generating, by the processingdevice, a second application cryptogram based on at least the secondsession key; and transmitting, by a transmitting device, at least thefirst application cryptogram and second application cryptogram for usein a payment transaction.

A system for generating payment credentials in a payment transactionincludes a memory, a receiving device, a processing device, and atransmitting device. The memory is configured to store at least a singleuse key associated with a transaction account. The receiving device isconfigured to receive a personal identification number. The processingdevice is configured to: identify a first session key; generate a secondsession key based on at least the stored single use key and the receivedpersonal identification number; generate a first application cryptogrambased on at least the first session key; and generate a secondapplication cryptogram based on at least the second session key. Thetransmitting device is configured to transmit at least the firstapplication cryptogram and second application cryptogram for use in apayment transaction.

Another system for generating payment credentials in a paymenttransaction includes a memory, a processing device, and a transmittingdevice. The memory is configured to store at least a card master keyassociated with a transaction account. The processing device configuredto generate a first session key based on at least the stored card masterkey; generate a second session key; generate a first applicationcryptogram based on at least the first session key; and generate asecond application cryptogram based on at least the second session key.The transmitting device is configured to transmit at least the firstapplication cryptogram and second application cryptogram for use in apayment transaction.

BRIEF DESCRIPTION OF THE DRAWING FIGURES

The scope of the present disclosure is best understood from thefollowing detailed description of exemplary embodiments when read inconjunction with the accompanying drawings. Included in the drawings arethe following figures:

FIG. 1 is a block diagram illustrating a high level system architecturefor processing payment transactions with advanced security in theprovisioning and storage of payment credentials in accordance withexemplary embodiments.

FIG. 2 is a block diagram illustrating the mobile device of FIG. 1 forthe processing payment transactions without a secure element and thesecure receipt and storage of payment credentials in accordance withexemplary embodiments.

FIG. 3 is a block diagram illustrating the card database of the mobiledevice of FIG. 2 for storing payment credentials in accordance withexemplary embodiments.

FIG. 4 is a block diagram illustrating the memory of the mobile deviceof FIG. 2 for storing data used in the generation of advanced storagekeys and generating of application cryptograms in accordance withexemplary embodiments.

FIG. 5 is a block diagram illustrating the transaction management serverof FIG. 1 for the processing of payment transactions with a mobiledevice without a secure element in accordance with exemplaryembodiments.

FIG. 6 is a block diagram illustrating the account database of theprocessing server of FIG. 5 for the storage of payment credentials andaccount details in accordance with exemplary embodiments.

FIG. 7 is a flow diagram illustrating a process for the transmitting andvalidation of dual application cryptograms for the processing of paymenttransactions involving a mobile device lacking a secure element inaccordance with exemplary embodiments.

FIG. 8 is a flow diagram illustrating an alternative process for thetransmitting and validation of dual application cryptograms for theprocessing of payment transactions involving a mobile device lacking asecure element in accordance with exemplary embodiments.

FIG. 9 is a flow diagram illustrating a process for creating,transmitting, and validating a remote notification service or other datamessage provisioned to a mobile device lacking a secure element inaccordance with exemplary embodiments.

FIGS. 10A and 10B are a flow diagram illustrating a process for thecreation, transmission, and validation of a message returned by a mobiledevice lacking a secure element in accordance with exemplaryembodiments.

FIG. 11 is a flow diagram illustrating a process for validating a remotenotification service message using the mobile device of FIG. 2 inaccordance with exemplary embodiments.

FIG. 12 is a diagram illustrating the generation of an advanced storagekey using the mobile device of FIG. 2 in accordance with exemplaryembodiments.

FIGS. 13 and 14 are flow charts illustrating exemplary methods forgenerated payment credentials in a payment transaction in accordancewith exemplary embodiments.

FIG. 15 is a flow chart illustrating an exemplary method for receivingand processing a remote notification service message in accordance withexemplary embodiments.

FIG. 16 is a flow chart illustrating an exemplary method for building anadvanced storage key in accordance with exemplary embodiments.

FIG. 17 is a block diagram illustrating a computer system architecturein accordance with exemplary embodiments.

Further areas of applicability of the present disclosure will becomeapparent from the detailed description provided hereinafter. It shouldbe understood that the detailed description of exemplary embodiments areintended for illustration purposes only and are, therefore, not intendedto necessarily limit the scope of the disclosure.

DETAILED DESCRIPTION Glossary of Terms

Payment Network—A system or network used for the transfer of money viathe use of cash-substitutes. Payment networks may use a variety ofdifferent protocols and procedures in order to process the transfer ofmoney for various types of transactions. Transactions that may beperformed via a payment network may include product or servicepurchases, credit purchases, debit transactions, fund transfers, accountwithdrawals, etc. Payment networks may be configured to performtransactions via cash-substitutes, which may include payment cards,letters of credit, checks, transaction accounts, etc. Examples ofnetworks or systems configured to perform as payment networks includethose operated by MasterCard®, VISA®, Discover®, American Express®,PayPal®, etc. Use of the term “payment network” herein may refer to boththe payment network as an entity, and the physical payment network, suchas the equipment, hardware, and software comprising the payment network.

Transaction Account—A financial account that may be used to fund atransaction, such as a checking account, savings account, creditaccount, virtual payment account, etc. A transaction account may beassociated with a consumer, which may be any suitable type of entityassociated with a payment account, which may include a person, family,company, corporation, governmental entity, etc. In some instances, atransaction account may be virtual, such as those accounts operated byPayPal®, etc.

Payment Card—A card or data associated with a transaction account thatmay be provided to a merchant in order to fund a financial transactionvia the associated transaction account. Payment cards may include creditcards, debit cards, charge cards, stored-value cards, prepaid cards,fleet cards, virtual payment numbers, virtual card numbers, controlledpayment numbers, etc. A payment card may be a physical card that may beprovided to a merchant, or may be data representing the associatedtransaction account (e.g., as stored in a communication device, such asa smart phone or computer). For example, in some instances, dataincluding a payment account number may be considered a payment card forthe processing of a transaction funded by the associated transactionaccount. In some instances, a check may be considered a payment cardwhere applicable.

Payment Transaction—A transaction between two entities in which money orother financial benefit is exchanged from one entity to the other. Thepayment transaction may be a transfer of funds, for the purchase ofgoods or services, for the repayment of debt, or for any other exchangeof financial benefit as will be apparent to persons having skill in therelevant art. In some instances, payment transaction may refer totransactions funded via a payment card and/or payment account, such ascredit card transactions. Such payment transactions may be processed viaan issuer, payment network, and acquirer. The process for processingsuch a payment transaction may include at least one of authorization,batching, clearing, settlement, and funding. Authorization may includethe furnishing of payment details by the consumer to a merchant, thesubmitting of transaction details (e.g., including the payment details)from the merchant to their acquirer, and the verification of paymentdetails with the issuer of the consumer's payment account used to fundthe transaction. Batching may refer to the storing of an authorizedtransaction in a batch with other authorized transactions fordistribution to an acquirer. Clearing may include the sending of batchedtransactions from the acquirer to a payment network for processing.Settlement may include the debiting of the issuer by the payment networkfor transactions involving beneficiaries of the issuer. In someinstances, the issuer may pay the acquirer via the payment network. Inother instances, the issuer may pay the acquirer directly. Funding mayinclude payment to the merchant from the acquirer for the paymenttransactions that have been cleared and settled. It will be apparent topersons having skill in the relevant art that the order and/orcategorization of the steps discussed above performed as part of paymenttransaction processing.

Point of Sale—A computing device or computing system configured toreceive interaction with a user (e.g., a consumer, employee, etc.) forentering in transaction data, payment data, and/or other suitable typesof data for the purchase of and/or payment for goods and/or services.The point of sale may be a physical device (e.g., a cash register,kiosk, desktop computer, smart phone, tablet computer, etc.) in aphysical location that a customer visits as part of the transaction,such as in a “brick and mortar” store, or may be virtual in e-commerceenvironments, such as online retailers receiving communications fromcustomers over a network such as the Internet. In instances where thepoint of sale may be virtual, the computing device operated by the userto initiate the transaction or the computing system that receives dataas a result of the transaction may be considered the point of sale, asapplicable.

System for Processing Payment Transactions Using a Mobile Device withoutSecure Elements

FIG. 1 illustrates a system 100 for the processing of paymenttransactions using a mobile device without requiring the use of secureelements, which can include the secure provisioning of paymentcredentials to a mobile device, secured storage thereof, and use ingenerating multiple application cryptograms for use in validating andprocessing the payment transaction.

The system 100 may include a transaction management server 102. Thetransaction management server 102, discussed in more detail below, maybe one or more computing devices specifically programmed to perform thefunctions discussed herein for provisioning payment credentials to amobile device 104 using securely transmitted remote notificationmessage, and for validating payment credentials produced by the mobiledevice 104 as part of a payment transaction. While it is illustrated anddiscussed herein that the transaction management server 102 performs avariety of functions, it will be apparent to persons having skill in therelevant art that the transaction management server 102 may be comprisedof multiple computing devices, servers, and/or computing networksconfigured to perform the functions discussed herein. The mobile device104, discussed in more detail below, may be any type of mobile computingdevice suitable for performing the functions discussed herein, which mayinclude a cellular phone, smart phone, smart watch, other wearable orembedded computing device, tablet computer, laptop computer etc. In someembodiments, the mobile device 104 may lack a secure element. In otherembodiments, the mobile device 104 may include a secure element, butsuch an element may not be used in conjunction with the methods andsystems discussed herein, or may be used in conjunction with the methodsand systems discussed herein, such as to provide additional security.

The mobile device 104 may communicate with the transaction managementserver 104 using multiple communication channels, such as utilizing dualchannel communication. Dual channel communication may include using twochannels of communication in the transmitting and receiving of data,such as for verification and authentication, to ensure greater securityin the transmission of data. The mobile device 104 may include a mobilepayment application (MPA) configured to be executed by the mobile device104 for performing the functions of the mobile device 104 discussedherein. The MPA, discussed in more detail below, may be installed on themobile device 104 and may be activated using an activation code providedby the transaction management server 102 using methods and systems thatwill be apparent to persons having skill in the relevant art, such thatthe mobile device 104 and transaction management server 102 may securelytransmit and receiving communications across one or more communicationchannels using shared data.

The system 100 may also include an issuer 106. The issuer 106 may be afinancial institution, such as an issuing bank, that issues a paymentcard or payment credentials to a consumer 108 associated with atransaction account. The issuer 106 may provide payment detailsassociated with the transaction account and/or payment card to thetransaction management server 102. The payment details may include, forexample, a transaction account number, account holder name, expirationdate, security code, etc. The transaction management server 102 maystore the data in an account database, discussed in more detail below.The transaction management server 102 may also provision the paymentcredentials to the mobile device 104. As used herein, the term “paymentcredentials” may refer to any data used by the mobile device 104 and/ortransaction management server 102 in the transmission and validation ofpayment information used in a payment transaction using the methods andsystems discussed herein, including, but not limited to, paymentdetails, payment credentials, single use keys, session keys, applicationcryptograms, card master keys, etc.

In some embodiments, the payment credentials may be provisioned to themobile device 104 via a remote notification service message. Asdiscussed in more detail below, the remote notification service (RNS)message may be a secure message that is transmitted to the mobile device104 and subsequently validated by the mobile device 104 such that thedata contained therein may be secure from other devices and users. TheMPA of the mobile device 104 may verify the authenticity of the receivedRNS message and may decrypt it to obtain the data included therein. Themobile device 104 may then perform any necessary functions, based on thedata (e.g., such as by executing instructions included in the data),and, if applicable, may generate a return message to be sent back to thetransaction management server 102. In some instances, the return messagemay be validated by the transaction management server 102.

In some instances, the validation of RNS messages in the mobile device104, or the validation of return messages at the transaction managementserver 102, may utilize at least message counters and authenticationcode. The use of both counters and authentication codes may ensure thatonly the mobile device 104 that is intended may be able to validate anddecrypt the data included in the RNS message. In addition, if the rulesand/or algorithms used in the generation of the authentication code areincluded in the MPA, then only a mobile device 104 that also includes aspecific instance of the application program may be able to validate theRNS message, resulting in additionally increased security. In instanceswhere the RNS message may include payment credentials, this may ensurethat the payment credentials are available only on the appropriatemobile device 104, and only if the MPA used to access them is a properand authorized application.

Payment credentials provisioned to the mobile device 104 may be securelystored in storage in the mobile device 104, such as a card database,discussed in more detail below. In some embodiments, the mobile device104 may be configured to generate an advanced storage key for use insecurely storing data, such as the payment credentials, in a database ormemory in the mobile device 104. The generating of an advanced storagekey, as discussed in more detail below, may utilize unique deviceinformation, unique MPA information, and randomly generated informationin order to identify a secure storage key that can be used to securelystore data in the mobile device 104. As a result, the paymentcredentials or other sensitive data may be securely stored in the mobiledevice 104 without the use of a secure element, which can result in themobile device 104 being capable of initiating and conducting paymenttransaction's without the use of a secure element, increasingavailability to issuers 106 and consumers 108, while maintaining a highlevel of security.

Once the mobile device 104 has payment credentials for a transactionaccount received, validated, and stored securely therein, a consumer 108may take the mobile device 104 to a point of sale 110 at a merchant toconduct a payment transaction. The consumer 108 may select goods orservices for purchase, may initiate a payment transaction for thepurchase thereof with a merchant, and may use the mobile device 104 toconvey the payment credentials for use in funding the paymenttransaction. The conveyance of payment credentials to the point of sale110 may include the transmission of two or more application cryptograms.The use of two or more application cryptograms may result in a higherlevel of security for transactions processed using the methods andsystems discussed herein than is available in traditional contactlessand remote transactions, including transactions conducted using a mobiledevice 104 having a secure element.

The application cryptograms may each be generated by the mobile device104 using separate session keys and additional data, discussed in moredetail below. The application cryptograms, generated using data storedin the mobile device 104, such as in storage secured via the advancedstorage key and associated with the MPA, may ensure that the applicationcryptograms authenticate the mobile device 104 and the specific instanceof the MPA. In some instances, one of the cryptograms and/or sessionkeys used to generate the cryptograms may use information provided bythe consumer 108, such as a personal identification number (PIN). Use ofthe PIN or other consumer authentication information may enable for acryptogram to authenticate both the consumer 108 and the mobile device104. In such an instance, the cryptograms generated by the mobile device104 may include one that authenticates the mobile device 104, and asecond that authenticates both the mobile device 104 and the consumer108.

The cryptograms may be received by the point of sale 110 as part of theconducting of the payment transaction, such as via near fieldcommunication. The application cryptograms may accompany additionalpayment information, such as may be required in the context of anysuitable type of payment transaction, such as a contactless transaction,a remote transaction, a secure remote payment transaction, a magneticstripe transaction, and an M/Chip EMV transaction, and may betransmitted to the point of sale 110 using any suitable method inaccordance therein as will be apparent to persons having skill in therelevant art. The cryptograms may be transmitted to an acquirer 112,which may be a financial institution, such as an acquiring bank,associated with the merchant. The acquirer 112 may, for instance, issuea transaction account to the merchant that is used to receive payment offunds from the consumer 108 for the payment transaction. The acquirer112 may submit the cryptograms and additional transaction details to apayment network 114 using methods and systems that will be apparent topersons having skill in the relevant art. For instance, the transactiondetails and application cryptograms may be included in an authorizationrequest submitted to the payment network 114 on the payment rails.

In some embodiments, both application cryptograms may be included in asingle transaction message. For example, the mobile device 104 and/orpoint of sale 110 may include both application cryptograms in legacydata fields of a traditional transaction message in order to transmitboth application cryptograms using existing payment systems andhardware. In some instances, the transaction management server 102 maybe configured to use Track 2 data for validation of the applicationcryptograms, such as in a magnetic stripe transaction. In suchinstances, if the transaction message include Track 1 data, thetransaction management server 102 may be configured to convert Track 1data into Track 2 data, which may also include converting modified Track1 or Track 2 data into unmodified (e.g., original, reconstructed, etc.)Track 1 or Track 2 data, respectively. By performing these functions,and by including the application cryptograms in legacy data fields, thetransaction management server 102 may be configured to process andvalidate remote and contactless payment transactions using a mobiledevice 104 with a higher level of security, without requiring the use ofa secure element on the mobile device 104, and without modification tolegacy payment systems.

The payment network 114 may process the payment transaction usingmethods and systems that will be apparent to persons having skill in therelevant art. As part of the processing, the payment network 114 maytransmit the application cryptograms to the issuer 106 for verification.In some embodiments, the verification may be performed by the paymentnetwork 114. The issuer 106 or payment network 114 may communicate withthe transaction management server 102. In some embodiments, theapplication cryptograms may be transmitted to the transaction managementserver 102, and may be verified via the generation of validatingapplication cryptograms using the transaction management server 102,which may be generated using the locally stored payment credentials. Inother embodiments, the issuer 106 or payment network 114 may requestapplication cryptograms from the transaction management server 102,which may generate them and return the cryptograms to the issuer 106 orpayment network 114 for validation against the cryptograms produced bythe mobile device 104.

Because the transaction management server 102 possesses the paymentcredentials and other data used by the mobile device 104 to generate theapplication cryptograms, validation of the payment credentials producedby the mobile device 104 to fund the payment transaction may beperformed via comparison of the application cryptograms generated by themobile device 104 and those generated by the transaction managementserver 102. In some embodiments, the transaction management server 102may be a part of the payment network 114 or issuer 106. In instanceswhere the transaction management server 102 may be part of the paymentnetwork 114, the validation may be performed prior to contacting theissuer 106 as part of the traditional processing of the paymenttransaction (e.g., for approval of funding the transaction using theconsumer's 108 transaction account with the issuer 106).

By using multiple application cryptograms, the security of the paymenttransactions can be increased. In addition, in instances where eachcryptogram may authenticate separate data, such as instances where onecryptogram authenticates the mobile device 104 and the otherauthenticates both the mobile device 104 and the consumer 108 (e.g., viathe consumer's PIN), it may also provide the issuer 106 with additionaldata and considerations for use in deciding to approve or deny atransaction. For example, if both cryptograms are incorrect (e.g., thecryptograms generated by the mobile device 104 do not match thosegenerated by the transaction management server 102), the transaction maybe denied. If one cryptogram is correct and the other incorrect, thetransaction may be denied for security reasons, or may be approved, suchas based on a decision of the issuer 106. For example, the issuer 106may approve a transaction where consumer authentication fails but mobiledevice authentication passes, as other available data may indicate thatan authorized user, but not the consumer 108, is using the mobile device104 for the transaction.

As a result, the use of both cryptograms may provide for valuable datathat can be used by payment networks 114 and issuers 106 in theprocessing of payment transactions. In addition, the use of two or morecryptograms may provide for increased security than in traditionalcontactless or remote payment methods, which may result in less fraudand more acceptance for consumers 108, issuers 106, and merchants. Ininstances where the use of two or more application cryptograms aregenerated from payment credentials that have been provisioned securelyusing RNS messaging methods and systems discussed herein, and storedsecurely via advanced storage keys generated using methods and systemsdiscussed herein, the overall security of the system 100 can be vastlyincreased over traditional systems for contactless payments andtransaction processing. As a result, the system 100 may provide forincreased security in several aspects of data transmission, storage, andprocessing than provided for in traditional contactless payment systemsand for other types of remote payment transactions and paymenttransactions in general that may use the methods and systems discussedherein.

Mobile Device

FIG. 2 illustrates an embodiment of the mobile device 104 of the system100. It will be apparent to persons having skill in the relevant artthat the embodiment of the mobile device 104 illustrated in FIG. 2 isprovided as illustration only and may not be exhaustive to all possibleconfigurations of the mobile device 104 suitable for performing thefunctions as discussed herein. For example, the computer system 1700illustrated in FIG. 17 and discussed in more detail below may be asuitable configuration of the mobile device 104.

The mobile device 104 may include a receiving unit 202. The receivingunit 202 may be configured to receive data over one or more networks viaone or more network protocols. The receiving unit 202 may receive, forinstance, program data for one or more application programs to beinstalled on and executed by the mobile device 104, such as a mobilepayment application (MPA) discussed in more detail below. The receivingunit 202 may also receive remote notification service (RNS) messages,such as messages transmitted by the transaction management server 102including RNS messages that include payment credentials. The receivingunit 202 may also receive additional data suitable for performing thetraditional functions of a mobile device 104, such as telephonecommunications, cellular communications, etc. In some instances, themobile device 104 may include a plurality of receiving units 202, suchas separate receiving units 202 each configured to communicate with oneor more separate networks via suitable protocols. For example, themobile device 104 may include a first receiving unit 202 for receivingdata for NFC transactions, and a second receiving unit 202 for receivingcommunications over a mobile communication network.

The mobile device 104 may also include an input unit 214. The input unit214 may be configured to communicate with one or more input devices thatare internally or externally connected to the mobile device 104 forreceiving input from the consumer 108, such as a keyboard, mouse, clickwheel, scroll wheel, touch screen, microphone, camera, receiver, etc.The input unit 214 may receive input from the consumer 108, which may beprocessed by a processing unit 204.

The processing unit 204 may be configured to perform the functions ofthe mobile device 104 discussed herein. The processing unit 204 mayexecute program code stored in the mobile device, such as for the MPA,and may be configured to perform a plurality of functions associatedwith each application program, in addition to other functions of themobile device 104. The processing unit 204 may receive input from theconsumer 108 via the input unit 214 and perform functions accordingly,such as by executing application programs, performing functions inprograms, receiving data, transmitting data, displaying data, etc., aswill be apparent to persons having skill in the relevant art. Forexample, the processing unit 204 may be configured to validate RNSmessages, generate advanced storage keys, and generate applicationcryptograms, as discussed in more detail below.

The mobile device 104 may also include a display unit 210. The displayunit 210 may be configured to communicate with one or more displaydevices that are internally or externally connected to the mobile device104 for displaying data, such as data transmitted to the display unit210 for display by the processing unit 204. Display devices may includeliquid crystal displays, light-emitting diode displays, thin filmtransistor displays, touch screen displays, etc.

The mobile device 104 may also include a transmitting unit 206. Thetransmitting unit 206 may be configured to transmit data over one ormore networks via one or more network protocols. The transmitting unit206 may transmit RNS response messages to the transaction managementserver 102. The transmitting unit 206 may also be configured to transmitapplication cryptograms and/or payment credentials, such as to a pointof sale 110, for use in a payment transaction. The transmitting unit 206may be further configured to perform additional functions of the mobiledevice 104 as will be apparent to persons having skill in the relevantart, such as the traditional functions of a mobile communication devicefor transmitting cellular communications, etc. In some instances, themobile device 104 may include a plurality of transmitting units 206,which may be separately configured to communicate with one or moreseparate networks, such as a transmitting unit 206 configured totransmit payment credentials and payment cryptograms via NFC and anothertransmitting unit 206 configured to transmit data over a mobilecommunication network.

The mobile device 104 may also include a card database 208. The carddatabase 208, discussed in more detail below, may be data storage on themobile device 104 that is configured to store data associated with oneor more transaction accounts and/or payment cards. The card database 208may store payment credentials associated with the transaction account,such as provisioned to the mobile device 104 by the transactionmanagement server 102 in a secure RNS message, and additional data thatmay be used in the generation of application cryptograms, as discussedin more detail below. In some instances, the card database 208 may bestored as part of the mobile payment application.

The mobile device 104 may further include a memory 212. The memory 212,discussed in more detail below, may be configured to store data for themobile device 104 suitable for performing the functions of the mobiledevice 104 discussed herein. For example, the memory 212 may store datasuitable for the generation of advanced storage keys for the encryptingof additional data in the mobile device 104, such as the card database208, as discussed in more detail below. The memory 212 may also beconfigured to store program code for application programs executed bythe processing unit 204, such as an operating system, program code forreceiving data via the input unit 214 and displaying data via thedisplay unit 210, rules and/or algorithms for performing functionsdiscussed herein, etc. The memory 212 may also store data suitable forperforming the traditional functions of a mobile device 104, such asrules and/or algorithms for transmitting and receiving cellularcommunications via a mobile network. Additional data stored in thememory 212 will be apparent to persons having skill in the relevant art.

Mobile Device Card Database

FIG. 3 illustrates an embodiment of the card database 208 of the mobiledevice 104 for storing payment credentials and other data associatedwith transaction accounts for use in funding payment transactionsconducted with the mobile device 108.

The card database 208 may include one or more payment profiles 302,illustrated in FIG. 3 as payment profiles 302 a, 302 b, and 302 c. Eachpayment profile 302 may be associated with a transaction account thatmay be used to fund a payment transaction and may include at leastpayment credentials 304, one or more single use keys 306, a firstsession key 308, a second session key 310, and an applicationtransaction counter 312.

The payment credentials 304 may include data associated with the relatedtransaction account that is used for identification and validation bythe payment network 114 and/or issuer 106 in the processing of a paymenttransaction using the related transaction account. The paymentcredentials 304 may include, for example, a transaction account number,security code, expiration date, cardholder name, authorized user name,tracking data, card layout description data, digit counts, bitmaps, etc.

Single use keys 306 may be payment tokens valid for a single paymenttransaction that may be used by the processing unit 204 of the mobiledevice 104 to generate one or more of the application cryptograms usedin the payment transaction. In some embodiments, a single use key 306may include one or more of the other data elements included in thepayment profile 302. For example, each single use key 306 may include adistinct application transaction counter 312, which may not be includedseparately in the payment profile 302. Different configurations of thedata stored in the payment profile 302 for use in performing thefunctions disclosed herein will be apparent to persons having skill inthe relevant art. In some instances, the single use key 306 may include,or may be comprised of, a key used to generate the one or moreapplication cryptograms. In some embodiments, the first session key 308and second session key 310 may be included in a single use key 306provisioned to the mobile device 104 and/or generated using dataincluded in the single use key 306.

The first session key 308 and second session key 310 may be additionalkeys that are used by the processing unit 204 in the generation of theapplication cryptograms transmitted to the point of sale 110 as part ofthe conducting of a payment transaction using the mobile device 104. Insome embodiments, the first session key 308 may be used in thegeneration of a first application cryptogram by the processing unit 204,such as using program code, rules, or algorithms stored in the memory212 of the mobile device 104. The second session key 310 may be used inthe generation of a second application cryptogram.

In some embodiments, the second session key 310 may be generated by theprocessing unit 204. In such an embodiment, the second session key 310may be generated using a single use key 306 and user authenticationdata, such as a PIN provided by the consumer 108 (e.g., via the inputunit 214). In such an embodiment, the second session key 310 may not bestored in the payment profile 302, and may instead be generated, used,and discarded as part of the payment transaction process. The secondapplication cryptogram may therefore, when generated from the secondsession key 310 that is generated using the single use key 306 and theconsumer PIN, serve to authenticate both the mobile device 104 and theconsumer 108.

The personal identification number (PIN), may be a number supplied bythe consumer 108 (e.g., during registration of the MPA on the mobiledevice 104 or registration of the transaction account with the issuer106 and/or transaction management server 102) that may be used toauthenticate the consumer 108. When conducting a payment transaction,the consumer 108 or other user of the mobile device 104 may supply a PINvia the input unit 214. In some embodiments, if the supplied PIN isincorrect (e.g., does not match the PIN supplied by the consumer 108during registration), then the processing unit 204 may continue togenerate the second session key 310 and subsequently generate the secondapplication cryptogram. If the supplied PIN is incorrect, then thesecond application cryptogram will thereby be incorrect, which willresult in a failed validation of the second application cryptogram bythe transaction management server 102, issuer 106, and/or paymentnetwork 114, which may provide the issuer 106 with an opportunity todecline the transaction accordingly, or still approve the transaction.

Mobile Device Memory

FIG. 4 illustrates an embodiment of the memory 212 of the mobile device104 for storing application programs and other data to be used in thesecured storage of data on the mobile device 104 and for the conductingof payment transactions using the mobile device 104. In an exemplaryembodiment, the memory 212 may not be a secure element.

The memory 212 may include device information 402. The deviceinformation 402 may include one or more pieces of data associated withthe mobile device 104 that may, in some instances, be unique to themobile device 104. For example, the device information 402 may include amedia access control address, a reference number, a serial number, anidentification number, etc. Additional information that may beconsidered device information 402 of a mobile device 104 will beapparent to persons having skill in the relevant art.

The memory 212 may also include a mobile payment application (MPA) 404.The MPA 404 may be an application program configured to perform thefunctions of the mobile device 104 discussed herein, such as the receiptand storage of payment credentials, validation of RNS messages, andgeneration of application cryptograms for use in conducting paymenttransactions. Additional features of the MPA 404 may include traditionalfeatures of a digital wallet or other similar application program, aswill be apparent to persons having skill in the relevant art.

The MPA 404 may include program code 406. The program code 406 may becode, executed by the processing unit 204 of the mobile device 104, thatcauses the processing unit 204 and other components of the mobile device104 to perform the functions of the MPA 404 as discussed herein. Forexample, the program code 406 may include code suitable for generatingapplication cryptograms, validating RNS messages, etc. The program code406 may also include program code suitable for generating a randomvalue, which may be used in the generation of an advanced storage key.The random value may be a random or pseudo-random number, which may begenerated using methods and systems that will be apparent to personshaving skill in the relevant art.

The MPA 404 may also include an instance identifier 408. The instanceidentifier 408 may be a value unique to the specific MPA 404, which maybe used in the generation of the advanced storage key used to securedata in the mobile device 104, such as the card database 208. By havingthe instance identifier 408 unique to the MPA 404, multiple MPAs 404 maybe installed on the mobile device 104, without any one MPA 404 beingable to access data that is securely stored by any other MPA 404, whichcan thereby ensure that payment profiles 302 for specific transactionaccounts are not accessible by other programs. The instance identifier408 may be a number, alphanumeric value, hexadecimal value, or anysuitable value that may be unique to an MPA 404.

As discussed in more detail below, the processing unit 204 of the mobiledevice 104 may be configured to generate a diversifier value using thedevice information 402, the random value generated using the programcode 406 of the MPA 404, and the instance identifier 408 stored in theMPA 404. The diversifier value may be used by a cryptography application410 also stored in the memory 212. The cryptography application 410 maybe an application program configured to perform white box cryptographyand/or any other suitable cryptographic function that will be apparentto persons having skill in the relevant art.

The cryptography application 410 may include program code 412. Theprogram code 412 may be executed by the processing unit 204 of themobile device 104 to enable the processing unit 204 and other componentsof the mobile device 104 to perform the cryptographic functions of thecryptography application 410 discussed herein. The functions may includethe generation of an advanced storage key. The advanced storage key maybe generated using the diversifier value generated by the mobile paymentapplication 404 and an encryption key 414 included in the cryptographyapplication 410. In some embodiments, the diversifier key may bedecrypted using the encryption key 414 to obtain the advanced storagekey.

The cryptography application 410 may also be configured to encryptstorage in the mobile device 104 using the advanced storage key. In someembodiments, the encryption may be performed using one or more white boxcryptography techniques. The encrypted storage may be the card database208 and/or any other suitable storage in the mobile device 104, such asdata stored in the MPA 404. In some embodiments, the cryptographyapplication 410 may be included as part of the MPA 404. The advancedstorage key may be stored in the cryptography application 410 or MPA404, or, in some instances, may be re-generated by the MPA 404 andcryptography application 410 when needed.

The memory 212 may also include any additional data stored in the mobiledevice 104 suitable for performing the functions discussed herein, aswell as any additional functions of mobile devices. For instance, thememory 212 may include program code for an operating system, code,rules, or algorithms for receiving and transmitting mobilecommunications, such as telephone calls, etc.

In some embodiments, the mobile device 104 may also be configured toreceive data already encrypted using the advanced storage key, which maybe stored in encrypted local storage in the mobile device 104, such asin the memory 212, the card database 208, or other suitable storage. Insuch an embodiment, the mobile device 104 may be configured to transmitthe generated random value to the transaction management server 102 orother trusted entity, which may generate the advanced storage key usingthe same methods and systems using the generated random value, and mayencrypt data that is provisioned to the mobile device 104. The mobiledevice 104 may thus receive data already encrypted using the advancedstorage key, for local storage in the mobile device 104.

Transaction Management Server

FIG. 5 illustrates an embodiment of the transaction management server102 of the system 100. It will be apparent to persons having skill inthe relevant art that the embodiment of the transaction managementserver 102 illustrated in FIG. 5 is provided as illustration only andmay not be exhaustive to all possible configurations of the transactionmanagement server 102 suitable for performing the functions as discussedherein. For example, the computer system 1700 illustrated in FIG. 17 anddiscussed in more detail below may be a suitable configuration of thetransaction management server 102.

The transaction management server 102 may include a receiving unit 502.The receiving unit 502 may be configured to receive data over one ormore networks via one or more network protocols. The receiving unit 502may receive data from the mobile device 104, such as receipt or returnmessages, confirmation messages, transaction notifications, etc.,payment network 114, issuer 106, or other suitable entity. The receivingunit 502 may receive transaction notifications or cryptogram requests,such as to initiate the generation of application cryptograms for use invalidation of payment credentials in a payment transaction. Thereceiving unit 502 may also receive transaction account data, such asfrom the issuer 106, for use in generating payment credentials forprovisioning to the mobile device 104.

The transaction management server 102 may also include a processing unit504. The processing unit 504 may be configured to perform the functionsof the transaction management server 102 discussed herein, as will beapparent to persons having skill in the relevant art. The processingunit 504 may thus be configured to generate and encrypt RNS messages anddata included therein, validate return messages from the mobile device104, generate payment credentials, generate application cryptograms,validate application cryptograms, etc., as discussed in more detailbelow.

The transaction management server 102 may further include a transmittingunit 506. The transmitting unit 506 may be configured to transmit dataover one or more networks via one or more network protocols. Thetransmitting unit 506 may transmit RNS messages, payment credentials,application cryptograms, validation notifications, and other data thatwill be apparent to persons having skill in the relevant art. Thetransmitting unit 506 may be configured to transmit data to the mobiledevice 104, such as via a mobile communication network or the Internet,the payment network 114, the issuer 106, and any other suitable entity.

The transaction management server 102 may also include an accountdatabase 508. The account database 508, discussed in more detail below,may be configured to store account information for a plurality oftransaction accounts. The account information may include data and keysused for the generation of application cryptograms used in validation ofpayment credentials received during payment transactions conducted usingthe mobile device 104. The account database 508 may also be configuredto store transaction data for payment transactions conducted involvingthe mobile device 104 and other data, such as data associated with theconsumer 108 or other authorized users of the related transactionaccount.

The transaction management server 102 may also include a memory 510. Thememory 510 may configured to store additional data for use by thetransaction management server 102 in performing the functions disclosedherein. For example, the memory 510 may store rules or algorithms forthe validation of application cryptograms, rules or algorithms for thegeneration of validation notifications, algorithms for the generation ofsession keys and application cryptograms, encryption keys for theencryption and decryption of data and RNS messages, etc. Additional datathat may be stored in the memory 510 will be apparent to persons havingskill in the relevant art.

Transaction Management Server Account Database

FIG. 6 illustrates an embodiment of the account database 508 of thetransaction management server 102 for storing data related totransaction accounts for use in validating payment credentials and othertransaction data provided in the conducting of payment transactionsincluding the mobile device 104.

The account database 508 may include a plurality of account profiles602, illustrated in FIG. 6 as account profiles 602 a, 602 b, and 602 c.Each account profile 602 may include one or more single use keys 604, afirst session key 606, a second session key 608, an applicationtransaction counter 610, and a first card master key 612. In someembodiments, an account profile 602 may further include a second cardmaster key 612.

Each account profile 602 may correspond to a payment profile 302provisioned to a mobile device 104. As such, the single use keys 604stored in an account profile 602 may correspond to the single use keys306 stored in the corresponding payment profile 302 related to the sametransaction account. The data may be similar such that, when anapplication cryptogram is generated by the transaction management server102 or the mobile device 104, the application cryptograms should matchif the data is accurate and has not been tampered with, which may enablevalidation of payment credentials presented by the mobile device 104.

In some embodiments, an account profile 602 may include a personalidentification number (PIN) that corresponds to the PIN 314 stored inthe corresponding payment profile 302. In such an embodiment, the PIN314 may be provided to the receiving unit 202 transaction managementserver 102 in a secure message, such as a receipt message provided bythe mobile device 104 discussed in more detail below. In otherembodiments, a card master key may be used in place of the PIN, such asthe first card master key 612. In such an embodiment, the processingunit 504 of the transaction management server 102 may be configured togenerate a second session key 608 based on the second card master key614 that corresponds to the second session key 310 generated by themobile device 104 using the single use key 306 and the PIN 314. In someinstances, the second session key 608 may also be based on thecorresponding single use key 604. In such embodiments, algorithms forthe generation of session keys and/or application cryptograms may ensurethat the cryptograms generated by the mobile device 104 and thetransaction management server 102 correspond based on data used therein.

The first session key 606 may be used by the processing unit 504 of thetransaction management server 102 to generate a first applicationcryptogram, and the second session key 608 may be used to generate asecond application cryptogram. In some embodiments, the applicationtransaction counter 610 may be used in the generation of one or more ofthe session keys and/or application cryptograms. The applicationtransaction counter 610 may be a value corresponding to the paymenttransaction to be conducted that is incremented or otherwise modifiedduring each transaction. The application transaction counter 610 maycorrespond to the application transaction counter 312 stored in thecorresponding payment profile 302 in the mobile device 104, such thatits use may ensure that only a valid MPA 404 may possess the correctapplication transaction counter 312 to generate valid session keysand/or application cryptograms. Additional techniques to further enhancethe security of the session key and/or application cryptogram generationmay be used, such as unpredictable numbers and other techniques thatwill be apparent to persons having skill in the relevant art.

Processing of Payment Transactions Using the Mobile Device

FIG. 7 illustrates a process for the processing of payment transactionsconducted using the mobile device 104 without a secure element and usingthe generation and validation of two or more application cryptograms.

In step 702, the transaction management server 102 may provision (e.g.,via the transmitting unit 506) payment credentials 304 and other accountdata to the mobile device 104, such as via an RNS message discussed inmore detail below. In step 704, the receiving unit 202 of the mobiledevice 104 may receive the payment credentials 304 and other accountdata. In step 706, the processing unit 204 of the mobile device 104 maystore the data in a payment profile 302 in the card database 208. Theaccount data may include the payment credentials 304, one or more singleuse keys 308, and any other suitable data, such as one or more of thesession keys 308 and 310.

In step 708, the processing unit 204 may generate two applicationcryptograms for use in conducting a payment transaction. In someembodiments, step 708 may be initiated by the consumer 108, such as byindicating via the input unit 214, by placing the mobile device 104 nearthe point of sale 110 to initiate the transaction via near fieldcommunication, or other suitable method. Generation of the applicationcryptograms may include generating a first application cryptogram usingthe first session key 308 stored in the payment profile 302. The secondapplication cryptogram may be generated using a second session key 310,which may be generated using a single use key 306 and a PIN 314. In someinstances, the consumer 108 may enter a PIN into the mobile device 104(e.g., via the input unit 214) prior to step 708 or during theinitiation of step 708. In some embodiments, one or both of theapplication cryptograms may also be generated using the applicationtransaction counter 312.

Once the application cryptograms have been generated, they, along withthe payment credentials 304, may be transmitted to the issuer 106 viathe point of sale 110, acquirer 112, and payment network 114. Thepayment credentials 304 and application cryptograms may be received bythe issuer 106 in step 710. In step 712, the transmitting unit 206 ofthe mobile device 104 may transmit a transaction notification to thetransaction management server 102. In step 714, the receiving unit 502of the transaction management server 102 may receive the transactionnotification. The transaction notification may notify the transactionmanagement server 102 that the mobile device 104 has initiated a paymenttransaction using the payment profile 302. In some instances, thetransaction notification may include identification information.

In step 716, the processing unit 504 of the transaction managementserver 102 may identify an account profile 602 corresponding to thepayment profile 302 and may generate two application cryptograms usingthe data contained therein. The first application cryptogram may begenerated using the first session key 606, which may be generated usingthe first card master key 612. The second application cryptogram may begenerated using the second session key 608. In some embodiments, one orboth of the application cryptograms and/or session keys may be furtherbased on the single use keys 604, application transaction counter 610,or any other suitable data.

In step 718, the transmitting unit 506 of the transaction managementserver 102 may transmit the generated application cryptograms to theissuer 106, which may receive the cryptograms in step 718. In step 720,the issuer 106 may validate the application cryptograms provided by themobile device 104 accompanying the payment credentials 304. Validationof the application cryptograms may include comparing the mobile device104 supplied cryptograms with the application cryptograms generated andsupplied by the transaction management server 102. Once validation isperformed, then, in step 722, the issuer 106 may process the transactionaccordingly. Transaction processing may include approval of the paymenttransaction, such as if one or both of the cryptograms are validated, ordenial of the payment transaction, such as if one or both of thecryptograms are determined to be invalid.

In step 724, a transaction notification may be transmitted by the issuer106, or other entity (e.g., the payment network 114, acquirer 112, etc.)as part of the processing of the payment transaction. The transactionnotification may be transmitted to the transaction management server 102and received by the receiving unit 502, in step 726. The transactionnotification may also be received by the receiving unit 202 of themobile device 104, in step 728. The transaction notification may be anindication of approval or denial of the payment transaction. Theprocessing units 204 and 504 of the mobile device 104 and transactionmanagement server 102, respectively, may each perform one or morefunctions as a result of the received transaction notification. Forinstance, if the transaction was approved and processed successfully,the application transaction counters 310 and 610 in the respectiveprofiles may be updated accordingly.

FIG. 8 illustrates an alternative process for processing a paymenttransaction using the mobile device 104.

In step 802, the payment credentials 304 and other account data may betransmitted to the mobile device 104 by the transmitting unit 506 of thetransaction management server 102. In step 804, the receiving unit 202of the mobile device 104 may receive the payment credentials 304 andother account data, which may be stored in a payment profile 302 in step806. In step 808, the processing unit 204 of the mobile device 104 maygenerate the two application cryptograms, as discussed above, and maytransmit the cryptograms, payment credentials 304, and other suitabledata to the issuer 106 (e.g., via the point of sale 110).

In step 810, the issuer 106 may receive the application cryptograms andany other suitable data that may be used by the issuer 106 to validatethe transaction data and/or process approval or denial of thetransaction. In step 812, the issuer 106 may submit a request forvalidation cryptograms to the transaction management server 102. In someembodiments, the request may include the payment credentials 304 orother data suitable for use by the transaction management server 102 inidentifying the account profile 602 to be used to generate thevalidation cryptograms. In one embodiment, the request may furtherinclude the two application cryptograms generated by the mobile device104 for validation.

In step 814, the receiving unit 502 of the transaction management server102 may receive the cryptogram request. In step 816, the processing unit504 of the transaction management server 102 may generate the twoapplication cryptograms to be used for validation, as discussed above.In embodiments where the cryptogram request also includes the twoapplication cryptograms generated by the mobile device 104, step 816 mayalso include the validation of the two cryptograms by the processingunit 504 using the two newly generated application cryptograms. Thevalidation cryptograms, or the validation result in applicableembodiments, may be transmitted by the transmitting unit 506 to theissuer 106. In step 818, the issuer 106 may receive the validationcryptograms and/or the validation result.

In step 820, the issuer 106 may validate the application cryptogramsprovided by the mobile device 104 using the application cryptogramsgenerated by the transaction management server 102. In embodiments wherethe transaction management server 102 provides a validation result tothe issuer 106, step 820 may include identifying the result of thevalidation of each of the two application cryptograms. In step 822, theissuer 106 may process the payment transaction accordingly based on theresult of the validation. In step 824, transaction notifications may betransmitted to the transaction management server 102 and the mobiledevice 104, received by the respective receiving units 502 and 202 insteps 826 and 828, respectively.

Remote Notification Service and Data Messaging

FIG. 9 illustrates a process for the transmission and validation ofremote notification service (RNS) messages and other data messagestransmitted from the transaction management server 102 to the mobiledevice 104. RNS messages may be transmitted via a remote notificationservice, such as one that utilizes a mobile communication networkassociated with the mobile device 104. RNS messages may be used toprovision payment credentials 304 and other account data to the mobiledevice 104, such as the account data used in the processing of paymenttransactions, as discussed above, and other information that may be usedin the establishing of a secure connection between the mobile device 104and the transaction management server 102.

In step 902, the processing unit 504 of the transaction managementserver 102 may generate a message. In instances where mutualauthentication is being established with the mobile device 104, themessage may include information suitable for establishing the mutualauthentication, such as a session identifier. In other instances, suchas when mutual authentication has been established between thetransaction management server 102 and mobile device 104 using theprocess illustrated in FIG. 9 and discussed herein, the generatedmessage may include payment credentials 304 and account data, mayinclude one or more commands to be executed by the MPA 404 of the mobiledevice 104 (e.g., the removal of single use keys 306 or paymentcredentials 304, etc.), may be notifications to be presented to theconsumer 108 (e.g., account balances, payment notifications, etc.), orinclude other suitable data.

In step 904, the processing unit 504 may encrypt the generated message.The message may be encrypted using a private key of a private/public keypair, where the mobile device 104 may possess a corresponding publickey. In some instances, the message may be encrypted using an encryptionkey associated with the mobile device 104 or the MPA 404, such as theencryption key 414. In step 906, the processing unit 504 may generate amessage authentication code. The message authentication code may begenerated using the encrypted message and may be a key that is generatedusing one or more specially configured rules and/or algorithms. Forinstance, the message authentication code may be generated using one ormore encryption and obfuscation methods, such as padding. In someembodiments, the message authentication code may be generated using theencryption key.

In step 908, the transmitting unit 506 of the transaction managementserver 102 may transmit a combined data message to the mobile device104. In embodiments where the mutual authentication may be beingperformed, the combined data message may be a remote notificationservice message transmitted to the mobile device 104 via the remotenotification service. The combined data message may be received by thereceiving unit 202 of the mobile device 104 in step 910, and may includethe message authentication code and the encrypted message. In someinstances, the combined data message may also include an additionalidentifier, such as one generated using methods known to the MPA 404 forverification thereof. In some cases, such as when mutual authenticationhas already been performed, the combined data message may also include amessage counter.

In step 912, the processing unit 204 may generate a referenceauthentication code. The reference authentication code may be generatedusing the received encrypted message and may be generated using the samerules and algorithms as the transaction management server 102 used togenerate the message authentication code, such that the generatedreference authentication code would correspond to the messageauthentication code, if the message authentication code is generated bya trustworthy source (e.g., the transaction management server 102). Inembodiments where the message authentication code may be generated usingthe encryption key, the processing unit 204 may generate the referenceauthentication code using the encryption key 414 stored in the memory212 or other suitable encryption key.

In step 914, the processing unit 204 may validate the messageauthentication code included in the received combined data message bycomparing it against the generated reference authentication code. Ifboth the message counter and message authentication code are validated,then the combined data message may be determined to be trustworthy(e.g., genuine) as coming from the transaction management server 102. Ininstances where the combined data message may include a messageidentifier, the processing unit 204 may also validate the messageidentifier by generating a message identifier using a process known bythe MPA 404 for generation and comparison thereof. In embodiments wherethe combined data message may include a message counter, the processingunit 204 may validate the message counter included in the receivedcombined data message with a reference counter stored in the mobiledevice 104, such as in the MPA 404 or in a payment profile 502.

In step 916, the processing unit 204 may decrypt the encrypted messageincluded in the received combined data message. The encrypted messagemay be decrypted using a key, such as one stored in the memory 212(e.g., in the cryptography application 410 or MPA 404) or stored in alocal encrypted database (e.g., encrypted using an advanced storagekey), or other suitable method of decryption. In step 918, theprocessing unit 204 may perform one or more appropriate actions based onthe data decrypted from the encrypted message. In the exampleillustrated in FIG. 9, the mobile device 104 may perform mutualauthentication with the transaction management server 102, such as usingthe session identifier included in the encrypted message and decryptedby the processing unit 204. In step 920, the transaction managementserver 102 may receive the session identifier and perform any additionalactions necessary for mutual authentication with the mobile device 104.In instances where mutual authentication has already been performed, themessage may include other information suitable for performing thefunctions disclosed herein, such as payment credentials 404, single usekeys 406, program instructions for the MPA 404, etc.

In some embodiments, the mobile device 104 may be configured (e.g., viathe MPA 404) to generate and submit a return message to the transactionmanagement server 102. In some instances, the return message may includedata generated in response to the actions performed as instructed in thedecrypted message, as discussed above. For example, a return message mayindicate valid receipt and storage of payment credentials 304 or singleuse keys 306. In other instances, the return message may be anotification of receipt and validation of the combined data message. Ininstances where mutual authentication is first being performed, thereturn message may include the session identifier used to perform themutual authentication.

FIGS. 10A and 10B illustrate a process for the generation andtransmission of a return message by the mobile device 104 and validationthereof by the transaction management server 102.

In step 1002, the processing unit 204 of the mobile device 104 maygenerate a receipt message. The receipt message may be generated basedon program code 406 stored in the MPA 404, and may be further based onactions performed as indicated in a decrypted combined data messagereceived from the transaction management server 102. For instance, thereceipt message may include a notification of successful receipt andstorage of payment credentials 304. In step 1004, the processing unit204 may increment a receipt counter. The receipt counter may be acounter indicative of the number of receipt messages transmitted to thetransaction management server 102. The receipt counter may be stored inthe memory 212, such as in the MPA 404, or in a database encrypted usingthe advanced storage key. It will be apparent to persons having skill inthe relevant art that step 1004 may be an optional step, and may only beused in instances where a counter is used for validation of a datamessage.

In step 1006, the processing unit 204 may encrypt the receipt message.The receipt message may be encrypted using the encryption key 414 storedin the cryptography application 410, or may be otherwise stored in theMPA 404 or a locally encrypted database. The encryption key used toencrypt the receipt message may be a private key as part of a key pair,with the transaction management server 102 possessing a correspondingpublic key. In step 1008, the processing unit 204 may generate a receiptauthentication code based on the encrypted receipt message. In someembodiments, the receipt authentication code may be generated using thesame rules, algorithms, and/or processes as used to generate thereference authentication code illustrated in step 912 of FIG. 9,discussed above.

In step 1010, the transmitting unit 206 of the mobile device 104 maytransmit a receipt notification message to the transaction managementserver 102. The receipt notification message may be received by thereceiving unit 502 of the transaction management server 102 and mayinclude at least the receipt authentication code, the encrypted receiptmessage, and the receipt counter. In some embodiments, the receiptnotification message may be transmitted to the transaction managementserver 102 using a mobile communication network, such as a cellularnetwork, associated with the mobile device 104.

In step 1014, the processing unit 504 of the transaction managementserver 102 may increment a confirmation counter. The confirmationcounter may be indicative of the number of messages received from themobile device 104, used for validation of messages received from themobile device 104. The confirmation counter may be stored in the memory510 of the transaction management server 102 or other suitable datastorage. For instance, in some embodiments, the confirmation counter maybe stored in an account profile 602 associated with the mobile device104. In one example, each account profile 602 may include a confirmationcounter (e.g., and/or a message counter) to be used for messagestransmitted to/from the transaction management server 102 and mobiledevice 104 related to the corresponding transaction account. It will beapparent to persons having skill in the relevant art that step 1014 maybe an optional step and may not be performed in instances where acounter may not be used for validation of return messages.

In step 1016, the processing unit 504 may generate a confirmationauthentication code. The confirmation authentication code may begenerated based on the encrypted receipt message included in the receiptnotification message, and may be generated using the same rules,algorithms, and/or processes used to generate the message authenticationcode. In step 1018, the processing unit 504 may validate the receiptcounter included in the receipt notification message by comparing it tothe confirmation counter. In step 1020, the processing unit 504 mayvalidate the receipt authentication code by comparing it to the messageauthentication code, to ensure that the message originated from anauthorized mobile device 104.

Once the counter (e.g., if applicable) and authentication code have beenvalidated, then, in step 1022, the processing unit 504 may decrypt theencrypted message included in the received receipt notification message.The encrypted message may be decrypted using a stored encryption key orother suitable method of decryption. The encrypted message may bedecrypted to obtain the receipt message generated by the mobile device104. In step 1024, the processing unit 504 may perform any appropriateactions as necessary based on the data included in the receipt message.For example, if the receipt message includes an indication of successfulreceipt and storage of single use keys 306, the processing unit 204 mayactivate corresponding single use keys 604 in a corresponding accountprofile 602.

Validation of Data Messages

FIG. 11 illustrates a process 1100 for the validation of data messagesreceived by the mobile device 104 from the transaction management server102.

In step 1102, the processing unit 204 of the mobile device 104 may storeencryption keys, authentication generation keys, and rules and/oralgorithms for the use and application thereof in local storage, such asthe memory 212 or locally encrypted storage encrypted using an advancedstorage key. In step 1104, the receiving unit 202 of the mobile device104 may receive a data message from the transaction management server102. In some embodiments, the data message may be received from thetransaction management server 102 following the establishing of mutualauthentication between the two devices, such as using the processillustrated in FIG. 9 and discussed above. The data message may includeat least a message counter, a message authentication code, and anencrypted message.

In step 1106, the processing unit 204 may increment a reference counter.The reference counter may be stored in the memory 212 or other localstorage, and may be used to indicate the number of messages receivedfrom the transaction management server 102. In some instances, thereference counter may be incremented using an algorithm, such that thereference counter may not be incremented using consecutive numbers, butvia an algorithm known to the mobile device 104 (e.g., via the MPA 404)and the transaction management server 102.

In step 1108, the processing unit 204 may validate the message counterincluded in the received data message. Validation of the message countermay include comparison of the message counter to the value of referencecounter after being incremented. Failed validation may indicate that thesource of the data message is not the transaction management server 102or is otherwise not trustworthy. If the validation fails, then, in step1110, the processing unit 204 may perform one or more appropriateactions associated with a failed data message receipt and/or validation.For example, the processing unit 204 may discard the data message, maynotify the transaction management server 102, may lock the associatedpayment profile 302, or other action that will be apparent to personshaving skill in the relevant art.

If the validation of the message counter passes, then the process 1100may proceed to step 1112, where the encrypted message may be padded.Padding of the encrypted message may include the addition of values tothe encrypted message or data associated thereof. Padding may be used toheighten the security of the message validation process, as it may beanother function that must be performed by the mobile device 104 andtransaction management server 102 known to each other that would need tobe replicated by an unauthorized entity in order to transmit or receivea data message successfully without authorization. It will be apparentto persons having skill in the relevant art that step 1112 may be anoptional step. In some embodiments, step 1112 may be applied in someinstances of the process 1110. For example, the encrypted message may bepadded at certain increments of the reference counter.

In step 1114, the processing unit 204 may generate a referenceauthentication code. The reference authentication code may be generatedbased on the encrypted message (e.g., as padded, if applicable) usingone or more rules or algorithms, such as stored in step 1102. In someembodiments, the reference authentication code may be a key or may be avalue generated by application of a key to the encrypted message. Instep 1116, the processing unit 204 may validate the messageauthentication code received in the RNS message. Validation of themessage authentication code may include comparison of the code to thegenerated reference authentication code, as another method ofidentification if the received data message originated from anauthorized source (e.g., the transaction management server 102).

If the validation of the message authentication code fails, the process1100 may proceed to step 1110 where the failure processing is performed.If the validation of the message authentication code passes, then, instep 1118, the encrypted message included in the received data messagemay be decrypted by the processing unit 204. The message may bedecrypted using one or more encryption/decryption keys, rules, and/oralgorithms, such as stored in the mobile device 104 in step 1102. Forexample, the encryption key 414 stored in the cryptography application410 of the memory 212 may be used to decrypt the encrypted message. Instep 1120, the processing unit 204 may perform one or more actions asappropriate based on the content of the decrypted message. For example,if the decrypted message includes single use keys 306, the single usekeys 306 may be stored in the appropriate payment profile 302 of thecard database 208, which may thereby be encrypted using the advancedstorage key.

Advanced Storage Key

FIG. 12 illustrates the generation and use of the advanced storage keyby the mobile device 104 for the secure storage of data in the mobiledevice 104, such as payment profiles 302 and other data that may besecurely stored and accessed in the mobile device 104 without the use ofsecure elements.

The device information 402 stored in the memory 212 of the mobile device104 may include three or more pieces of device information 1202,illustrated in FIG. 12 as device information 1202 a, 1202 b, and 1202 c.Each piece of device information 1202 may be associated with the mobiledevice 104. In some instances, each piece of device information 1202 maybe unique to the mobile device 104. In other instances, one or more ofthe pieces of device information 1202 may not be unique to the mobiledevice 104 (e.g., a model number), but the three pieces of deviceinformation 1202 when taken together may be unique to the mobile device104 (e.g., a unique combination). The pieces of device information 1202may be data that will not change during the lifespan of the mobiledevice 104.

The processing unit 204 of the mobile device 104 may generate a mobiledevice fingerprint 1204 based on the three pieces of device information1202 a, 1202 b, and 1202 c. The mobile device fingerprint 1204 may be avalue unique to the mobile device 104, and may be generated using one ormore rules or algorithms stored in the memory 212, such as included inthe program code 406 of the MPA 404. The mobile device fingerprint 1204may be, for example, a numerical value, a hexadecimal value, a characterstring, etc.

The processing unit 204 may also be configured to generate a diversifiervalue 1208 using the mobile device fingerprint 1204. The diversifiervalue may be generated by combining the mobile device fingerprint 1204with the instance identifier 408 of the MPA 404 as well as a randomvalue 1206. The random value 1206 may be a random or pseudo-randomnumber generated by the processing unit 204. In some instances, therandom value 1206 may be generated pursuant to one or more rules oralgorithms stored in the memory 212. The combination of the mobiledevice fingerprint 1204, instance identifier 408, and random value 1206may also be performed using one or more rules or algorithms, such asstored in the program code 406 of the MPA 404. Use of the instanceidentifier 408 to generate the diversifier value may result in theability to securely store data associated with an instance of the MPA404 such that multiple installations of the MPA 404 may be unable toaccess data stored by other instances of the MPA 404.

The processing unit 204 may then generate an advanced storage key 1210via application of the encryption key 414 stored in the cryptographyapplication 410 to the diversifier value 1208. In some instances, theadvanced storage key 1210 may be generated by decryption of thediversifier value 1208 using the encryption key 414. In other instances,the advanced storage key 1210 may be a value resultant from theencryption of the diversifier value 1208 using the encryption key 414.In some embodiments, the advanced storage key 1210 may be generated asthe result of performing white box cryptography using the encryption key414 and the diversifier value 1208.

Once the advanced storage key 1210 has been generated, the processingunit 204 may use the advanced storage key 1210 to encrypt a localdatabase 1210. The local database 1210 may be comprised of, for example,the card database 208, one or more payment profiles 302, part of thememory 212, or other suitable data source. In some instances, the localdatabase 1210 may be a part of another database in the mobile device104, such as the card database 208. For example, the card database 208may include a plurality of local databases 1212, such as a separatelocal database 1212 for each instance of the MPA 404 for storing paymentprofiles 302 associated thereof. The resulting encrypted local database1214 may thereby securely store data that is inaccessible by any otherapplication program internal or external the mobile device 104 exceptthe specific instance of the MPA 404 that includes the instanceidentifier 408. Accordingly, the encrypted local database 1214 may beideal to store payment credentials 304, single use keys 306, and otheraccount data, and may provide for secure storage of sensitive accountinformation without the use of secure elements.

In some embodiments, the storage key may also be used by the transactionmanagement server 102 to provide encrypted data to the mobile device 104for storage in the encrypted local database 1214. For example, thetransmitting unit 206 of the mobile device 104 may transmit thegenerated random value 1206 to the transaction management server 102. Insome instances, the instance identifier 408 may also be transmitted tothe transaction management server 102, or it may be previously possessedby the transaction management server 102, such as during registration ofthe MPA 404. The transaction management server 102 may then generate theadvanced storage key 1210 itself, encrypt data to be provisioned to themobile device 104, such as payment credentials 304, single use keys 306,etc. using the advanced storage key 1210, and then transmit theencrypted data to the mobile device 104. The mobile device 104 may thenstore the already encrypted data in the encrypted local database 1214.

First Exemplary Method for Generating Payment Credentials in a PaymentTransaction

FIG. 13 illustrates a method 1300 for the generating of paymentcredentials in a payment transaction, including the use of twoapplication cryptograms for the secure use of payment credentials in amobile device 104 without a secure element.

In step 1302, at least a single use key (e.g., single use key 306) maybe stored in a memory (e.g., a payment profile 302) associated with atransaction account. In some embodiments, the memory 302 may be anon-Secure Element memory in a mobile communication device (e.g., themobile device 104). In step 1304, a personal identification number (PIN)may be received by a receiving device (e.g., the receiving unit 202and/or input unit 214).

In step 1306, a first session key (e.g., first session key 308) may beidentified by a processing device (e.g., the processing unit 204). Instep 1308, a second session key (e.g., second session key 310) may begenerated by the processing device 204 based on at least the storedsingle use key 306 and the received PIN.

In step 1310, a first application cryptogram may be generated by theprocessing device 204 based on at least the first session key 308. Instep 1312, a second application cryptogram may be generated by theprocessing device 204 based on at least the second session key 310.

In step 1314, at least the first application cryptogram and the secondapplication cryptogram may be transmitted by a transmitting device(e.g., the transmitting unit 206) for use in a payment transaction. Insome embodiments, the first application cryptogram and the secondapplication cryptogram may be transmitted to a point of sale device(e.g., the point of sale 110). In one embodiment, the method 1300 mayfurther include storing, in the memory 302, a card master key associatedwith the transaction account, wherein identifying the first session key308 includes generating, by the processing device 204, the first sessionkey 308 based on at least the stored card master key.

In some embodiments, the method 1300 may also include storing, in thememory 302, an application transaction counter (e.g., the applicationtransaction counter 312), wherein identifying the first session key 308includes generating, by the processing device 204, the first session key308 based on at least the stored application transaction counter 312. Inone embodiment, the method 1300 may further include validating, by theprocessing device 204, the received PIN prior to generating the secondsession key 310. In a further embodiment, the processing device 204 maybe configured to generate an invalid second session key 310 ifvalidation of the received PIN fails.

Second Exemplary Method for Generating Payment Credentials in a PaymentTransaction

FIG. 14 illustrates a method 1400 for the generating of paymentcredentials in a payment transaction, including the use of twoapplication cryptograms validation of payment credentials generated by amobile device 104 without the use of a secure element.

In step 1402, at least a card master key (e.g., first card master key612) may be stored in a memory (e.g., account profile 602) associatedwith a transaction account. In step 1404, a first session key (e.g.,first session key 606) may be generated by a processing device (e.g.,the processing device 504) based on at least the stored card master key612. In step 1406, a second session key (e.g., second session key 608)may be generated by the processing device 504.

In step 1408, a first application cryptogram may be generated by theprocessing device 504 based on at least the first session key 606. Instep 1410, a second application cryptogram may be generated by theprocessing device 504 based on at least the second session key 608. Instep 1412, at least the first application cryptogram and the secondapplication cryptogram may be transmitted by a transmitting device(e.g., the transmitting unit 506) for use in a payment transaction.

In one embodiment, the method 1400 may further include storing, in thememory 602, a transaction account sequence number associated with thetransaction account, wherein the first session key is further based onthe stored transaction account sequence number. In some embodiments, themethod 1400 may also include storing, in the memory 602, a second cardmaster key (e.g., the second card master key 614) associated with thetransaction account, wherein the second session key 608 is based on atleast the stored second card master key 614.

In one embodiment, the method 1400 may further include: receiving, by areceiving device (e.g., the receiving unit 502), a first correspondingapplication cryptogram and a second corresponding applicationcryptogram; validating, by the processing device, (i) the received firstcorresponding application cryptogram based on the generated firstapplication cryptogram, and (ii) the received second correspondingapplication cryptogram based on the generated second applicationcryptogram; and transmitting, by the transmitting device 506, a resultof the validation for use in the payment transaction. In a furtherembodiment, the first corresponding application cryptogram and thesecond corresponding application cryptogram may be received from a pointof sale device (e.g., the point of sale 110). In another furtherembodiment, the result of the validation may be transmitted to afinancial institution (e.g., the issuer 106) associated with thetransaction account.

Exemplary Method for Processing a Data Message

FIG. 15 illustrates a method 1500 for processing a data message, such asa remote notification message received via a remote notificationservice, including the receipt and validation thereof by a mobile device104 without using a secure element.

In step 1502, at least an encryption key may be stored in a memory(e.g., the memory 212). In some embodiments, the memory 212 may benon-Secure Element memory in a mobile communication device (e.g., themobile device 104). In step 1504, a data message may be received by areceiving device (e.g., the receiving unit 202), wherein the datamessage may include at least an encrypted message and a messageauthentication code, where the message authentication code is generatedusing at least a portion of the encrypted message. In some embodiments,the data message may be an remote notification service message receivedvia a remote notification service.

In step 1506, a reference authentication code may be generated by aprocessing device (e.g., the processing unit 204) using at least aportion of the encrypted message included in the received data message.In one embodiment, the memory 212 may further include one or moreauthentication code generation rules, and the reference authenticationcode may be generated based on application of the stored one or moreauthentication code generation rules to the portion of the encryptionmessage included in the received data message. In step 1508, thereceived data message may be validated by the processing device 204based on a check of the message authentication code included in thereceived data message against the generated reference authenticationcode. In some embodiments, the memory may further include a referencecounter, the received data message may further include a messagecounter, and the received data message may be further validated by theprocessing device 204 based on a check of the message counter includedin the received data message against the stored reference counter.

In step 1510, the encrypted message included in the data message may bedecrypted by the processing device 204 using the stored encryption keyto obtain a decrypted message. In one embodiment, the decrypted messagemay include at least one of: a digitized card profile (e.g., paymentcredentials 304) and a single use key (e.g., the single use key 306) foruse in a payment transaction. In some embodiments, the method 1500 mayalso include checking, by the processing device 204, a data format ofthe decrypted message based on one or more data formatting rules.

In one embodiment, the method 1500 may further include transmitting, bya transmitting device (e.g., the transmitting unit 206), a receiptnotification in response to the received data message. In a furtherembodiment, the method 1500 may even further include: performing, by theprocessing device 204, one or more actions based on the decryptedmessage; generating, by the processing device 204, a return message as aresult of or based on the performed one or more actions; encrypting, bythe processing device 204, the generated return message using the storedencryption key to obtain an encrypted return message; and generating, bythe processing device 204, a return authentication code using at least aportion of the encrypted return message, wherein the transmitted receiptnotification includes the encrypted return message, and the returnauthentication code. In an even further embodiment, the memory 212 mayfurther include a return counter, and the transmitted receiptnotification may further include the return counter.

In some embodiments, the method 1500 may also include padding, by theprocessing device 204, the encrypted message included in the receiveddata message using a padding key, wherein the portion of the encryptedmessage used to generate the reference authentication code is the paddedencrypted message. In a further embodiment, the padding key may be theencryption key. In another further embodiment, the memory 212 mayfurther include an authentication code padding algorithm, and paddingthe encrypted message using the padding key may include padding theencrypted message based on application of the padding key to theauthentication code padding algorithm.

Exemplary Method for Building an Advanced Storage Key

FIG. 16 illustrates a method 600 for building an advanced storage keyfor the secure encryption and storage of local data in a mobile device104 without using a secure element.

In step 1602, at least device information (e.g., device information 402)associated with a mobile communication device (e.g., the mobile device104), program code (e.g., program code 406) associated with a firstapplication program (e.g., the mobile payment application 404), andprogram code (e.g., program code 412) associated with a secondapplication program (e.g., the cryptography application 410) may bestored in a memory (e.g., the memory 212) of the mobile communicationdevice 104, wherein the program code 406 associated with the firstapplication program 404 includes at least an instance identifier (e.g.,instance identifier 408) and the program code 412 associated with thesecond application program 410 includes at least a first key (e.g., theencryption key 414).

In some embodiments, the device information 402 may include one or moreunique identifier associated with the mobile communication device 104.In one embodiment, the instance identifier 408 may be unique to aninstance of the first application program 404. In some embodiments, thesecond application program 410 may be configured to perform white boxcryptography using the first key. In one embodiment, the first key maybe a dynamic key. In some embodiments, the program code 412 associatedwith the second application program 410 may be included in the programcode 406 associated with the first application program 404. In furtherembodiments, the second application program 410 may be an executablefunction of the first application program 404.

In step 1604, a device fingerprint (e.g., mobile device fingerprint1204) associated with the mobile communication device 104 may begenerated by a processing device (e.g., the processing unit 204) basedon the stored device information 402 via execution of the program code406 associated with the first application program 404. In step 1606, arandom value (e.g., random value 1206) may be generated by theprocessing device 204 via execution of the program code 406 associatedwith the first application program 404. In some embodiments, the randomvalue 1206 may be a random or pseudo-random number.

In step 1608, a diversifier value (e.g., diversifier value 1208) may bebuilt by the processing device 204 based on at least the generateddevice fingerprint 1204, the generated random value 1206, and theinstance identifier 408 included in the program code 406 associated withthe first application program 404. In step 1610, the built diversifiervalue 1208 may be decrypted by the processing device 204 using the firstkey stored in the program code 412 associated with the secondapplication program 410 via execution of the program code 412 associatedwith the second application program 410 to obtain a storage key (e.g.,advanced storage key 1210).

In some embodiments, the method 1600 may further include: storing, in alocal database (e.g., the local database 1212) of the mobilecommunication device 104, protected data; and encrypting, by theprocessing device 204, the protected data stored in the local database1212 using the storage key 1210. In one embodiment, the method 1600 mayalso include: storing, in the memory 212, program data associated withthe first application program 404; and storing, in the program dataassociated with the first application program 404, the generated randomvalue 1206.

In one embodiment, the method 1600 may also include: transmitting, by atransmitting device (e.g., the transmitting unit 206) at least therandom value 1206; receiving, by a receiving device (e.g., the receivingunit 202), one or more encrypted parameters, wherein the one or moreencrypted parameters are each encrypted using the storage key 1210; andstoring, in a local database 1212 of the mobile communication device104, the received one or more encrypted parameters. In a furtherembodiment, the storage key 1210 may be transmitted to a third party(e.g., the transaction management server 102) and the one or moreencrypted parameters may be received from the third party 102. In somefurther embodiments, the instance identifier 408 may also be transmittedby the transmitting device 206.

Computer System Architecture

FIG. 17 illustrates a computer system 1700 in which embodiments of thepresent disclosure, or portions thereof, may be implemented ascomputer-readable code. For example, the transaction management server102 and mobile device 104 of FIG. 1 may be implemented in the computersystem 1700 using hardware, software, firmware, non-transitory computerreadable media having instructions stored thereon, or a combinationthereof and may be implemented in one or more computer systems or otherprocessing systems. Hardware, software, or any combination thereof mayembody modules and components used to implement the methods of FIGS. 7,8, 9A, 9B, 10A, 10B, 11, and 13-16.

If programmable logic is used, such logic may execute on a commerciallyavailable processing platform or a special purpose device. A personhaving ordinary skill in the art may appreciate that embodiments of thedisclosed subject matter can be practiced with various computer systemconfigurations, including multi-core multiprocessor systems,minicomputers, mainframe computers, computers linked or clustered withdistributed functions, as well as pervasive or miniature computers thatmay be embedded into virtually any device. For instance, at least oneprocessor device and a memory may be used to implement the abovedescribed embodiments.

A processor unit or device as discussed herein may be a singleprocessor, a plurality of processors, or combinations thereof. Processordevices may have one or more processor “cores.” The terms “computerprogram medium,” “non-transitory computer readable medium,” and“computer usable medium” as discussed herein are used to generally referto tangible media such as a removable storage unit 1718, a removablestorage unit 1722, and a hard disk installed in hard disk drive 1712.

Various embodiments of the present disclosure are described in terms ofthis example computer system 1700. After reading this description, itwill become apparent to a person skilled in the relevant art how toimplement the present disclosure using other computer systems and/orcomputer architectures. Although operations may be described as asequential process, some of the operations may in fact be performed inparallel, concurrently, and/or in a distributed environment, and withprogram code stored locally or remotely for access by single ormulti-processor machines. In addition, in some embodiments the order ofoperations may be rearranged without departing from the spirit of thedisclosed subject matter.

Processor device 1704 may be a special purpose or a general purposeprocessor device. The processor device 1704 may be connected to acommunications infrastructure 1706, such as a bus, message queue,network, multi-core message-passing scheme, etc. The network may be anynetwork suitable for performing the functions as disclosed herein andmay include a local area network (LAN), a wide area network (WAN), awireless network (e.g., WiFi), a mobile communication network, asatellite network, the Internet, fiber optic, coaxial cable, infrared,radio frequency (RF), or any combination thereof. Other suitable networktypes and configurations will be apparent to persons having skill in therelevant art. The computer system 1700 may also include a main memory1708 (e.g., random access memory, read-only memory, etc.), and may alsoinclude a secondary memory 1710. The secondary memory 1710 may includethe hard disk drive 1712 and a removable storage drive 1714, such as afloppy disk drive, a magnetic tape drive, an optical disk drive, a flashmemory, etc.

The removable storage drive 1714 may read from and/or write to theremovable storage unit 1718 in a well-known manner. The removablestorage unit 1718 may include a removable storage media that may be readby and written to by the removable storage drive 1714. For example, ifthe removable storage drive 1714 is a floppy disk drive or universalserial bus port, the removable storage unit 1718 may be a floppy disk orportable flash drive, respectively. In one embodiment, the removablestorage unit 1718 may be non-transitory computer readable recordingmedia.

In some embodiments, the secondary memory 1710 may include alternativemeans for allowing computer programs or other instructions to be loadedinto the computer system 1700, for example, the removable storage unit1722 and an interface 1720. Examples of such means may include a programcartridge and cartridge interface (e.g., as found in video gamesystems), a removable memory chip (e.g., EEPROM, PROM, etc.) andassociated socket, and other removable storage units 1722 and interfaces1720 as will be apparent to persons having skill in the relevant art.

Data stored in the computer system 1700 (e.g., in the main memory 1708and/or the secondary memory 1710) may be stored on any type of suitablecomputer readable media, such as optical storage (e.g., a compact disc,digital versatile disc, Blu-ray disc, etc.) or magnetic tape storage(e.g., a hard disk drive). The data may be configured in any type ofsuitable database configuration, such as a relational database, astructured query language (SQL) database, a distributed database, anobject database, etc. Suitable configurations and storage types will beapparent to persons having skill in the relevant art.

The computer system 1700 may also include a communications interface1724. The communications interface 1724 may be configured to allowsoftware and data to be transferred between the computer system 1700 andexternal devices. Exemplary communications interfaces 1724 may include amodem, a network interface (e.g., an Ethernet card), a communicationsport, a PCMCIA slot and card, etc. Software and data transferred via thecommunications interface 1724 may be in the form of signals, which maybe electronic, electromagnetic, optical, or other signals as will beapparent to persons having skill in the relevant art. The signals maytravel via a communications path 1726, which may be configured to carrythe signals and may be implemented using wire, cable, fiber optics, aphone line, a cellular phone link, a radio frequency link, etc.

The computer system 1700 may further include a display interface 1702.The display interface 1702 may be configured to allow data to betransferred between the computer system 1700 and external display 1730.Exemplary display interfaces 1702 may include high-definition multimediainterface (HDMI), digital visual interface (DVI), video graphics array(VGA), etc. The display 1730 may be any suitable type of display fordisplaying data transmitted via the display interface 1702 of thecomputer system 1700, including a cathode ray tube (CRT) display, liquidcrystal display (LCD), light-emitting diode (LED) display, capacitivetouch display, thin-film transistor (TFT) display, etc.

Computer program medium and computer usable medium may refer tomemories, such as the main memory 1708 and secondary memory 1710, whichmay be memory semiconductors (e.g., DRAMs, etc.). These computer programproducts may be means for providing software to the computer system1700. Computer programs (e.g., computer control logic) may be stored inthe main memory 1708 and/or the secondary memory 1710. Computer programsmay also be received via the communications interface 1724. Suchcomputer programs, when executed, may enable computer system 1700 toimplement the present methods as discussed herein. In particular, thecomputer programs, when executed, may enable processor device 1704 toimplement the methods illustrated by FIGS. 7, 8, 9A, 9B, 10A, 10B, 11,and 13-16, as discussed herein. Accordingly, such computer programs mayrepresent controllers of the computer system 1700. Where the presentdisclosure is implemented using software, the software may be stored ina computer program product and loaded into the computer system 1700using the removable storage drive 1714, interface 1720, and hard diskdrive 1712, or communications interface 1724.

Techniques consistent with the present disclosure provide, among otherfeatures, systems and methods for processing payment transactions usinga mobile device without using a secure element, including thetransmission and validation of remote notification service messages andsecure storage of data using an advanced storage key. While variousexemplary embodiments of the disclosed system and method have beendescribed above it should be understood that they have been presentedfor purposes of example only, not limitations. It is not exhaustive anddoes not limit the disclosure to the precise form disclosed.Modifications and variations are possible in light of the aboveteachings or may be acquired from practicing of the disclosure, withoutdeparting from the breadth or scope.

What is claimed is:
 1. A method for generating payment credentials in apayment transaction, comprising: storing, in a memory, at least a singleuse key associated with a transaction account; receiving, by a receivingdevice, a personal identification number; identifying, by a processingdevice, a first session key; generating, by the processing device, asecond session key based on at least the stored single use key and thereceived personal identification number; generating, by the processingdevice, a first application cryptogram based on at least the firstsession key; generating, by the processing device, a second applicationcryptogram based on at least the second session key; and transmitting,by a transmitting device, at least the first application cryptogram andsecond application cryptogram for use in a payment transaction.
 2. Themethod of claim 1, further comprising: storing, in the memory, a cardmaster key associated with the transaction account, wherein identifyingthe first session key includes generating, by the processing device, thefirst session key based on at least the stored card master key.
 3. Themethod of claim 1, further comprising: storing, in the memory, anapplication transaction counter, wherein identifying the first sessionkey includes generating, by the processing device, the first session keybased on at least the stored application transaction counter.
 4. Themethod of claim 1, further comprising: validating, by the processingdevice, the received personal identification number prior to generatingthe second session key.
 5. The method of claim 4, wherein the processingdevice is configured to generate an invalid second session key ifvalidation of the received personal identification number fails.
 6. Themethod of claim 1, wherein the first application cryptogram and thesecond application cryptogram are transmitted to a point of sale device.7. The method of claim 1, wherein the memory is non-Secure Elementmemory in a mobile communication device.
 8. A method for generatingpayment credentials in a payment transaction, comprising: storing, in amemory, at least a card master key associated with a transactionaccount; generating, by a processing device, a first session key basedon at least the stored card master key; generating, by the processingdevice, a second session key; generating, by the processing device, afirst application cryptogram based on at least the first session key;generating, by the processing device, a second application cryptogrambased on at least the second session key; and transmitting, by atransmitting device, at least the first application cryptogram andsecond application cryptogram for use in a payment transaction.
 9. Themethod of claim 8, further comprising: storing, in the memory, atransaction account sequence number associated with the transactionaccount, wherein the first session key is further based on the storedtransaction account sequence number.
 10. The method of claim 8, furthercomprising: storing, in the memory, a second card master key associatedwith the transaction account, wherein the second session key is based onat least the stored second card master key.
 11. The method of claim 8,further comprising: receiving, by a receiving device, a firstcorresponding application cryptogram and a second correspondingapplication cryptogram; validating, by the processing device, (i) thereceived first corresponding application cryptogram based on thegenerated first application cryptogram, and (ii) the received secondcorresponding application cryptogram based on the generated secondapplication cryptogram; and transmitting, by the transmitting device, aresult of the validation for use in the payment transaction.
 12. Themethod of claim 11, wherein the first corresponding applicationcryptogram and the second corresponding application cryptogram arereceived from a point of sale device.
 13. The method of claim 11,wherein the result of the validation is transmitted to a financialinstitution associated with the transaction account.
 14. A system forgenerating payment credentials in a payment transaction, comprising: amemory configured to store at least a single use key associated with atransaction account; a receiving device configured to receive a personalidentification number; a processing device configured to identify afirst session key, generate a second session key based on at least thestored single use key and the received personal identification number,generate a first application cryptogram based on at least the firstsession key, and generate a second application cryptogram based on atleast the second session key; and a transmitting device configured totransmit at least the first application cryptogram and secondapplication cryptogram for use in a payment transaction.
 15. The systemof claim 14, wherein the memory is further configured to store a cardmaster key associated with the transaction account, and identifying thefirst session key includes generating, by the processing device, thefirst session key based on at least the stored card master key.
 16. Thesystem of claim 14, wherein the memory is further configured to store anapplication transaction counter, and identifying the first session keyincludes generating, by the processing device, the first session keybased on at least the stored application transaction counter.
 17. Thesystem of claim 14, wherein the processing device is further configuredto validate the received personal identification number prior togenerating the second session key.
 18. The system of claim 17, whereinthe processing device is configured to generate an invalid secondsession key if validation of the received personal identification numberfails.
 19. The system of claim 14, wherein the first applicationcryptogram and the second application cryptogram are transmitted to apoint of sale device.
 20. The system of claim 14, wherein the memory isnon-Secure Element memory in a mobile communication device.
 21. A systemfor generating payment credentials in a payment transaction, comprising:a memory configured to store at least a card master key associated witha transaction account; a processing device configured to generate afirst session key based on at least the stored card master key, generatea second session key, generate a first application cryptogram based onat least the first session key, and generate a second applicationcryptogram based on at least the second session key; and a transmittingdevice configured to transmit at least the first application cryptogramand second application cryptogram for use in a payment transaction. 22.The system of claim 21, wherein the memory is further configured tostore a transaction account sequence number associated with thetransaction account, and the first session key is further based on thestored transaction account sequence number.
 23. The system of claim 21,wherein the memory is further configured to store a second card masterkey associated with the transaction account, and the second session keyis based on at least the stored second card master key.
 24. The systemof claim 21, further comprising: a receiving device configured toreceive a first corresponding application cryptogram and a secondcorresponding application cryptogram, wherein the processing device isfurther configured to validate (i) the received first correspondingapplication cryptogram based on the generated first applicationcryptogram, and (ii) the received second corresponding applicationcryptogram based on the generated second application cryptogram, and thetransmitting device is further configured to transmit a result of thevalidation for use in the payment transaction.
 25. The system of claim24, wherein the first corresponding application cryptogram and thesecond corresponding application cryptogram are received from a point ofsale device.
 26. The system of claim 24, wherein the result of thevalidation is transmitted to a financial institution associated with thetransaction account.